Mitsubishi Corporation Power Ltd (MCP), a wholly owned subsidiary of Mitsubishi Corporation (MC), has announced that Aioi Bioenergy Corporation, a joint venture established with The Kansai Electric Power Co., Inc (KEPCO) in April 2017, has reached an agreement with lenders for the procurement of a loan under a non-recourse project finance scheme for the development of a new biomass-fired power plant in western Japan.
The agreement has enabled Aioi Bioenergy to embark on plant design and procurement of equipment.
This plant will operate as Unit 2 of Aioi Power Station, located in Hyogo Prefecture (capacity: 375 MW), after facilitating conversion from its current use of heavy or crude oil as fuel sources to the use of woody biomass.
The Unit has been offline since 1 April 2018, but will fire up once the refurbishing and construction of boilers, fuel conveyer systems and turbines as well as the replacement of relevant plant components and other necessary installations are complete.
Operations as a biomass power generation facility are slated to commence in January 2023 for a 20-year period. The plant will be fueled using natural wood pellets. This will not only contribute to controlling carbon dioxide emissions but will also allow the facility to operate as a base load plant.
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